GET DAILY SIGNALSFRI vs USRT: Weighing Two REIT ETFs on Cost, Liquidity, and Fit
Key Takeaways
- Both FRI and USRT are passively managed U.S. REIT ETFs that hold many of the same large-cap names, making them near-direct competitors for the same investor goal.
- Cost is the decisive structural difference: USRT carries a 0.08% expense ratio versus 0.50% for FRI, a gap that compounds into a meaningful performance drag over time.
- Liquidity and scale favor USRT: with roughly $4.3 billion in assets versus around $180 million for FRI, USRT offers tighter spreads and deeper secondary-market trading.
- Both funds are market-cap-weighted and concentrated in the same top holdings, led by WELL, PLD, and EQIX, so exposure differences are minor rather than structural.
- Tickeron AI Verdict: USRT is the preferred ticker, driven by materially lower costs, greater liquidity, and comparable diversification.
Why These Two REIT ETFs Matter for Investors
For those seeking broad, income-oriented exposure to U.S. listed real estate, FRI and USRT stand out as two of the most directly comparable options. Both are straightforward, passively managed ETFs that track market-capitalization-weighted indexes of U.S. equity REITs, and both deliver nearly identical top holdings and sector allocations. This overlap makes the comparison especially practical today, since the choice often hinges on cost, liquidity, and small index differences rather than major variations in what each fund owns. From what I see, clarifying those structural points helps investors select the better wrapper for their real estate allocation.
First Trust S&P REIT Index Fund (FRI) at a Glance
FRI aims to track the S&P United States REIT Index, a market-cap-weighted benchmark of publicly traded U.S. REITs. Launched in 2007 by First Trust, the fund typically invests at least 90% of its net assets in index securities. It holds roughly 126 to 136 positions and carries a net expense ratio of 0.50%. Its top holdings center on large-cap REIT leaders, including WELL, PLD, EQIX, SPG, and DLR. The portfolio is effectively 100% real estate, spanning specialized, health care, retail, residential, and industrial REITs. I also checked this using Tickeron’s AI Screener to see how the holdings line up against peers. As a passive, market-cap-weighted fund, its main traits are broad REIT coverage and a comparatively higher fee.
iShares Core U.S. REIT ETF (USRT) at a Glance
USRT tracks the FTSE Nareit Equity REITs 40 Act Capped Index, a diversified market-cap-weighted index of U.S.-listed equity REITs that excludes mortgage, timber, and infrastructure REITs. Managed by BlackRock's iShares, the fund holds roughly 126 to 136 positions and charges a low 0.08% expense ratio. Its largest holdings closely mirror those of FRI: WELL, PLD, EQIX, SPG, and DLR, along with PSA and O. By industry, exposure leans toward specialized REITs (roughly 27%), health care (about 18%), retail (about 17%), and residential (about 15%). Its key strengths are scale, strong liquidity, and a notably lean cost structure.
Current Industry and Thematic Context
Both funds sit within a U.S. REIT market shaped heavily by interest rate expectations, given that REITs depend on debt financing and are often valued against bond yields. When borrowing costs ease, real estate valuations and capital flows into the sector tend to improve; when yields remain high, income-oriented REITs can face pressure. Beyond rates, the sector is evolving with structural demand shifts: data-center and specialized REITs such as EQIX and DLR benefit from AI and cloud-driven digital infrastructure growth, while health care REITs tied to aging demographics have shown resilience. Retail and office exposures remain the most cyclical. Both funds carry concentrated large-cap exposure to these same drivers and risks.
Performance and Positioning Side by Side
Because FRI and USRT hold nearly identical top positions, their performance has tracked closely in recent weeks and across market cycles, with relative returns driven more by the cost differential than by stock selection differences. Over multi-year periods, the 0.50% fee on FRI versus 0.08% on USRT creates a persistent drag that widens the gap in USRT's favor as holding periods lengthen. Volatility profiles are similar, though USRT's deeper liquidity tends to support tighter bid-ask spreads during stress. Both respond to the same macro factors—interest rate shifts, earnings among top holdings, and rotations between growth and income segments—so the decision rests on efficiency and scale rather than markedly different positioning.
Using Tickeron Tools for ETF Comparisons
When evaluating options like these, I often rely on Tickeron’s AI Screener to quickly filter ETFs by expense ratios, AUM, liquidity metrics, and industry exposure. This helps surface the structural edges that matter most for long-term holding without manual number crunching. The tool also lets me compare volatility and performance patterns across similar funds in a single view, which keeps the analysis efficient and data-driven.
Tickeron AI Verdict
On observable structural factors, Tickeron's AI would currently favor USRT. The two funds offer nearly interchangeable REIT exposure, but USRT delivers a materially lower expense ratio (0.08% versus 0.50%), substantially greater assets under management and trading liquidity, and comparable diversification. These advantages support superior long-term cost efficiency and more robust execution in volatile markets, with no meaningful sacrifice in sector coverage or holdings quality. Accordingly, USRT appears the more efficient wrapper for broadly similar exposure, though the conclusion is probabilistic and based on structure rather than a forecast of future returns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Momentum Indicator for FRI turns positive, indicating new upward trend
FRI saw its Momentum Indicator move above the 0 level on October 15, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In 71 of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for FRI just turned positive on October 09, 2026. Looking at past instances where FRI's MACD turned positive, the stock continued to rise in 37 of 45 cases over the following month. The odds of a continued upward trend are 82%.
FRI moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for FRI crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 76%.
Following a +2.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where FRI advanced for three days, in 257 of 319 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FRI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.
FRI broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FRI entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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